European authorities will likely provide some leniency to firms
providing trade and transaction
reporting as part of MiFID II
requirements, according to a panel
of experts.

Speaking at The TRADE’s MiFID
II Checklist event in London the
panel debated the possible consequences of over reporting and
inaccurate reporting, informing
delegates regulators understand
the difficult task ahead for firms.

“Speaking to the European
Securities and Markets Authority (ESMA), we have mentioned
real-time reporting is new for the
industry and for non-equity instruments. There are of course going
to be inaccurate records within
that 15-minute timeframe,” said Liz
Carter, managing director of trade
reporting and clearing strategy at
Tradeweb.

“ESMA understands that willhappen and they are okay with it.If you are demonstrating you areattempting to be compliant thenthere will be some leniency on thetrade reporting side. Although tobe clear, if you are trying to swerveyour obligations then there will bepenalties,” she added.

Per Loven, commercial director
at TRADEcho, agreed with Carter
and told delegates this is also his
understanding of the enforcement
of reporting under MiFID II.

“Nobody expects this to be per-fect come 3 January next year. Thepoint is best efforts count and iffirms do as much as they can thenother aspects of the requirementswill begin to work themselves out,”he said.

Matthew Luff, MiFID II consultant at Janus Henderson Global
Investors, added buy-side firms
will do their best to keep reports
as accurate as possible, but there
will be instances where mistakes
are made.

Experts predict lenientenforcement of MiFIDII reporting rulesFirms likely to be given some time to get their reporting accuracy on track in 2018.